New Delhi– India requires competitive tax rates to become an attractive manufacturing destination, which will help create jobs and boost economic growth, Finance Minister Arun Jaitley said on Wednesday.
“In order to keep manufacturing competitive we have to keep our rates competitive and therefore have to occasionally vary those rates,” he said at the annual investiture ceremony of the Central Board of Excise and Customs here.
“Manufacturing is not only extremely important activity, but it is one activity with its spiral effect on the economy, which also creates the largest volumes of job, and a tax on that manufacturing adds to the government revenue,” the minister said.
“As the economies grow, not only the width of revenue grows but the expectation of people for greater level of developments, evolution of society as welfare state also grows. Manufacturing in any growing economy has a very vital role,” he added.
Jaitley said because of some “clever” manufacturers, who try to avoid paying taxes, it was necessary for the excise department to remain vigilant.